Study On The Influence Of Asset Structure And Liability Structure Of Real Estate Listed Companies On Profitability

The real estate industry plays a decisive role in the development of the national economy.It is a basic and pillar industry in China's economic construction.Meanwhile,the real estate industry is also related to the livelihood of the people,which is closely related to the stable development of the country and the living standard of the people.With the intensive policy control and the purchase concept of buyers becoming more rational,the real estate industry has ended the stage of profiteering.How to improve the profitability of enterprises is the top priority for major real estate enterprises.Compared with other industries,real estate enterprises are rich in assets,and production and operation mainly rely on debt financing to obtain funds.Asset structure and liability structure are complex combinations.Liabilities and liabilities structure will affect investment behavior of enterprises,and investment structure is reflected in asset structure.In turn,the investment structure will affect the profitability of the enterprise.Therefore,it is necessary to analyze the profitability of the enterprise from the perspective of the joint role of asset structure and debt structure.Firstly,the article carries on the related literature from two aspects: the relationship between the assets structure and the profitability,the relationship between the liability structure and the profitability.On the basis of previous scholars' research,this paper expounds the function mechanism of asset structure and liability structure on profitability,and puts forward the research hypotheses based on this,and designs variables and builds regression models.In this paper,the financial data of 139 real estate listed companies are collected by using the Choice financial database of Oriental wealth.After screening,the complete and effective sample data of 128 enterprises for 2011-2016 years were selected,and the empirical study was carried out.Get the following results: holdings of real estate listed companies in China's current assets and current liabilities accounted for a large proportion,and both have reverse inhibition effect the profitability of the enterprise,and at higher current rate,the inhibition was more strongly;inventory is the basic guarantee of the profitability of the real estate business,but has no significant relationship with profitability.the negative effects due to excessive monetary funds have not been reflected by the lag of accounting information.a certain scale of fixed assets inhibits profitability.Bank loans and bond financing have negative inhibitory effect on the profitability,and commercial credit is not significant;none of the three types of debt can bring effective improvements in the profitability of enterprises,higher proportion of bank loans produces higher agency costs,commercial credit and bond financing advantages are not reflected.The results fully show that our existing assets structure and liability structure of listed real estate companies are not reasonable,which is not conducive to the improvement of corporate profitability and long-term sustainable development.Finally,based on the empirical results,the paper puts forward the countermeasures and suggestions for optimizing the assets structure and liability structure of real estate enterprises,and provides basis and guidance for the management of real estate enterprises to enhance their profitability.